A Guide for Companies in the UAE to Adhere to the New Compliance Mandates

The Corporate Register serves as a foundational repository, carrying details about the organizational framework and governance of an organization. It goes a long way in fostering transparency and helping regulatory bodies and financial institutions carry out thorough due diligence. This significantly bolsters trust within the business environment in the UAE. New businesses must prepare their registers to be inspected within 60 days of their registration date. On the other hand, existing companies have just 30 days upon receipt of circulars regarding new rules to update and prepare their registers.

Each company bears the responsibility of maintaining updated corporate secretarial records, including the time of meetings between the board and shareholders, agendas, and notices. The authorities are likely to verify these records. The relevant licensing authority should be notified about any alterations to these records within 15 days. Besides, companies are required to update these documents on the government portal and submit the revised client documents.

Non-compliance with these mandates carries significant penalties, with fines of up to AED 50,000. Other potential consequences include temporary suspension of the trade license or closure of the business. Moreover, the licensing authority will scrutinize these directives to ensure transparency.